New Books Network Aija Leiponen, "Digital Innovation Strategy" (Cambridge UP, 2023)
Jan 14, 2026
Aija Leiponen, an economist and strategy professor at Cornell University, dives into the world of digital innovation strategies in her latest work. She contrasts digital with digital-enabled firms, shedding light on their differing cost structures. Aija reveals how behavioral uncertainty is often overlooked and debates the limited role of generative AI in reducing uncertainty. She discusses the power dynamics of platforms, the risks of data as a strategic asset, and the implications of algorithmic bias. With insights drawn from real-world cases, Aija guides innovators on navigating the complexities of digital markets.
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Digital Cost Structures Drive Competition
- Digital-first firms have fundamentally different cost structures than physical producers, creating massive economies of scale and fierce market-share competition.
- Recognize which bucket your firm fits in to predict competitive dynamics and design strategy accordingly.
Three Kinds Of Uncertainty
- Innovation faces technical, market, and behavioral uncertainty, with behavioral uncertainty often the hardest to foresee.
- Anticipate how users will repurpose technology and design to learn and adapt quickly after launch.
Lower Market Risk With Early Prototyping
- Use design thinking, early prototyping, and lean practices to lower market uncertainty before scaling.
- Test concepts with users early to discover willingness to use and pay.
